In the ownership breakdown for an Embassy Suites franchise application, what level of detail is required regarding individuals who own or control the legal entities that own the applicant entity?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
INSTRUCTIONS: Please provide a complete breakdown of the owners of the Applicant Entity and any related entity that holds/will hold fee title to the Hotel. For complex structures, please attach a detailed organizational chart (see next page). If these owners are other legal entities, please include a breakdown of their underlying ownership. That means you should provide the name and description/percentage of ownership interest of all individuals who own and/or control these entities. Copy this form as needed to provide multiple structures.
Source: Item 23 — RECEIPTS (FDD pages 97–305)
What This Means (2025 FDD)
According to Embassy Suites's 2025 Franchise Disclosure Document, the franchise application requires a complete breakdown of the owners of the applicant entity and any related entity that holds or will hold the fee title to the hotel. For complex ownership structures, Embassy Suites requires a detailed organizational chart to be attached to the application.
If the owners are legal entities, the application must include a breakdown of their underlying ownership. This means the applicant must provide the name, description, and percentage of ownership interest for all individuals who own or control these entities. This requirement ensures that Embassy Suites has a clear understanding of the individuals ultimately responsible for the franchise.
Embassy Suites requires a full organizational chart for the applicant entity and any affiliate that will lease or sublease the hotel or site to the applicant. The chart must show all direct and indirect equity owners up to the ultimate individual owners, excluding public shareholders or passive investors in an institutional investment fund. For each equity owner, the applicant must describe the type of interest held (e.g., shareholder, general partner) and the percentage of ownership.